Capstone’s latest Outdoor Recreation & Enthusiasts Market Update reports that global outdoor recreation market participants have continued to attract healthy consumer demand through early 2023 following the dramatic spike witnessed during the COVID-19 pandemic. Despite soaring inflation and mounting fears of an impending recession, spending on outdoor goods has persisted at healthy levels as the resilience of the U.S. consumer continues to thwart one of the more anticipated recessions in recent memory.
Inventory management has resurfaced as a crucial factor in maintaining healthy operating performance in the sector as businesses simultaneously court robust consumer demand and grapple with pricing pressures that have squeezed profit margins.
Meanwhile, the tightened lending environment—exacerbated by turmoil among regional banks—has added challenges to the M&A market for privately-owned companies, and sector M&A volume has slowed year-to-date. However, demand for quality assets remains high as sector leaders continue to leverage acquisitions to augment organic growth and expand product offerings.
Also included in this report:
- Analysis of M&A valuations broken down by sector and key drivers of premium multiples.
- Close examination of the inventory challenges currently facing sector participants and their implications on M&A activity.
- The qualities acquirers are currently prioritizing—and rewarding—in acquisition targets amid a budding flight to quality.
- Insights and commentary from Capstone’s senior bankers on notable transactions and sector trends.
Capstone Partners’ Consumer Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the consumer and retail industries. Our team partners with leading mid-to-large sized consumer businesses that serve growing end-markets. For more information on the global outdoor recreation market trends featured in this report or to speak with one of our Consumer Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.
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